Amazon Shares Fall More Than 7% After Earnings Miss and AI Spending Concerns

Amazon shares fell more than 7% in Friday premarket trading after the company missed third-quarter revenue and earnings estimates, putting its planned capital spending back in focus.

Revenue totaled $201.94 billion, below the $202.31 billion analysts had expected. Earnings per share were $1.89, short of the $1.97 estimate.

Amazon Web Services revenue rose 39% to $46 billion, its fastest annual growth in nearly five years. North American sales increased 6%, while international revenue grew 5%.

Amazon plans about $220 billion in capital spending in 2026 and expects spending to be higher in 2027. The company is expanding its artificial intelligence business, adding investor focus on the cost of that growth.

Operating income increased to $28.1 billion from $17.4 billion a year earlier. Free cash flow over the past 12 months was a $42.4 billion outflow, compared with a $14.8 billion inflow in the prior-year period.